Re-test FAR

Explain how the concerned scenario abides by or violates an accounting concept:

Lehman Brothers, a major investment bank, filed for bankruptcy in 2008 amidst the global financial crisis. The collapse of Lehman Brothers raised questions about the viability of other financial institutions and the overall stability of the financial system.

Select the most appropriate answer:

The amount brought in by the proprietor in the business should be credited to

• Cash account

• Capital account

• Drawing account

Select the most appropriate answer:

The Cash discount allowed to a debtor should be credited to

• Discount account

• Customer's account

• Sales account

State under what heading would you classify the given account:

Salary prepaid account

• Personal

• Real

• Nominal

State under what heading would you classify the given account:

Bad debts account

• Personal

• Real

• Nominal

State under what heading would you classify the given account:

Salary outstanding account

• Personal

• Real

• Nominal

Fill in the blank:

The process of transferring the debit and credit items from a Journal to their respective accounts in the Ledger is termed as....

While posting transactions in the ledger, if the account is debited in the Journal, it will be credited in the Ledger

• False

• True

Ledger records transactions in an analytical order.

• True

• False